NY Personal Lines Insurance Practice Examination Questions Answered Correctly Latest
Update 2026/2027
All of the following are correct for excess lines carriers EXCEPT - Answers they offer better
contracts at lower rates.
Which of the following is one of the ways the Gramm-Leach Bliley Act affects the insurance
industry? - Answers It establishes which insurance products banks and bank subsidiaries may
provide as principal.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of 2002? -
Answers It limits the exposure of individual insurers and the insurance industry as a whole.
Which of the following ways did the Violent Crime Control and Law Enforcement Act expand
federal laws? - Answers It prohibited anyone in insurance convicted on a state or federal felony
involving dishonesty or breach of trust without a consent waiver from the Commissioner.
What does the abandonment condition state? - Answers It prevents the insured from
abandoning property before being reimbursed.
The following is true regarding deductibles EXCEPT - Answers the benefit can exceed the policy
limitations when the deductible is paid.
All of the following elements are necessary for an insurance contract to be valid and
enforceable EXCEPT - Answers the contract must be signed and notarized to be valid.
The description of the insured will be found in which part of an insurance policy? - Answers
definitions
Which of the following does Homeowners Special form (HO-3) cover that Homeowners Broad
form (HO-2) does not? - Answers structures other than the dwelling
Which of the following is the special limit of coverage on the homeowners policy form for
property damage to personal watercraft? - Answers $1,500
Which of the following would be covered perils under the DP-1 Basic policy form? - Answers riot
or civil commotion
All of the following are TRUE for the hired auto liability policy EXCEPT - Answers the
endorsement is available with other commercial auto insurance.
All the following are TRUE regarding assigned risk plans EXCEPT - Answers the insurer
participation in the assigned risk program is mandatory.
In accordance with the Fair Credit Reporting Act, in what way must a consumer be informed that
an investigative report has been ordered by an insurer? - Answers They must be informed in
writing before or soon after the report has been ordered and be allowed more information upon
Update 2026/2027
All of the following are correct for excess lines carriers EXCEPT - Answers they offer better
contracts at lower rates.
Which of the following is one of the ways the Gramm-Leach Bliley Act affects the insurance
industry? - Answers It establishes which insurance products banks and bank subsidiaries may
provide as principal.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of 2002? -
Answers It limits the exposure of individual insurers and the insurance industry as a whole.
Which of the following ways did the Violent Crime Control and Law Enforcement Act expand
federal laws? - Answers It prohibited anyone in insurance convicted on a state or federal felony
involving dishonesty or breach of trust without a consent waiver from the Commissioner.
What does the abandonment condition state? - Answers It prevents the insured from
abandoning property before being reimbursed.
The following is true regarding deductibles EXCEPT - Answers the benefit can exceed the policy
limitations when the deductible is paid.
All of the following elements are necessary for an insurance contract to be valid and
enforceable EXCEPT - Answers the contract must be signed and notarized to be valid.
The description of the insured will be found in which part of an insurance policy? - Answers
definitions
Which of the following does Homeowners Special form (HO-3) cover that Homeowners Broad
form (HO-2) does not? - Answers structures other than the dwelling
Which of the following is the special limit of coverage on the homeowners policy form for
property damage to personal watercraft? - Answers $1,500
Which of the following would be covered perils under the DP-1 Basic policy form? - Answers riot
or civil commotion
All of the following are TRUE for the hired auto liability policy EXCEPT - Answers the
endorsement is available with other commercial auto insurance.
All the following are TRUE regarding assigned risk plans EXCEPT - Answers the insurer
participation in the assigned risk program is mandatory.
In accordance with the Fair Credit Reporting Act, in what way must a consumer be informed that
an investigative report has been ordered by an insurer? - Answers They must be informed in
writing before or soon after the report has been ordered and be allowed more information upon
